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XVII. CHAPTER 17-CLAIMS IN THE MODERATE REHABILITATION PROGRAM<br />

A. INTRODUCTION<br />

This chapter describes the PHA's policies, procedures and standards for servicing contracts in the<br />

Moderate Rehabilitation Program.<br />

B. OWNER CLAIMS<br />

Under Moderate Rehabilitation contracts, owners may make "special claims" for damages,<br />

unpaid rent, and vacancy loss after the tenant has vacated the unit.<br />

Owner claims for payment for unpaid rent, damages, or vacancy loss will be reviewed for<br />

accuracy and completeness and compared with records in the file. The PHA establishes standards<br />

by which to evaluate claims, but the burden of proof rests with the owner.<br />

The file will also be reviewed to verify owner compliance at the time the contract was<br />

terminated.<br />

The PHA will pay properly filed claims to the owner as a function of the contract, but the family<br />

is ultimately responsible to reimburse the PHA for claims paid to the owner. If a claim is filed<br />

by a Mod Rehab landlord, the family will be offered an informal hearing in accordance with<br />

chapters 15 and 19 of this <strong>Admin</strong>istrative <strong>Plan</strong>, prior to the claim being paid, by notice mailed to<br />

the last known address. If the PHA pays the owner’s claim, the participant will be required to<br />

repay the PHA. If the family does not repay the claim they will be referred to a collection<br />

agency.<br />

For units under a Certificate HAP contract effective before October 2, 1995, if the family vacates<br />

the unit without proper notice in writing to the owner, the family will be responsible for any<br />

vacancy loss paid by the PHA.<br />

In a move, assistance stops at the old unit at the end of the month in which the tenant ceased to<br />

occupy, unless proper notice was given to end a lease mid-month. Assistance will start on the<br />

new unit on the effective date of the lease and contract. Assistance payments may only overlap<br />

for the one month in which the family moves into another subsidized unit.<br />

If the contract was terminated for owner breach, or the owner was in violation of the contract at<br />

the time it was terminated, there will be no entitlement to claims.<br />

C. UNPAID RENT<br />

Unpaid rent only applies to the tenant's portion of rent while the tenant is in residence under the<br />

assisted lease. It does not include the tenant's obligation for rent beyond the termination date of<br />

Copyright 2000 by Nan McKay & Associates<br />

To be printed only with permission of Nan McKay & Associates<br />

Unlimited copies may be made for internal use<br />

Approved by <strong>CMHA</strong> Board of Commissioners<br />

October 3, 2012<br />

141 | P a g e

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